Education

The Relationship Between Self-Improvement and Personal Finance

January 9, 2013 By Jennifer Derrick Leave a Comment

With New Year’s just past and most people still in the honeymoon phase of their resolutions, it’s worth a brief look at how many self-improvement activities benefit your finances, and how studying one area can have a positive impact on the other.

I’ll confess to being something of a self-improvement junkie. Not because my life is in desperate need of repair, but because I find subjects like the relationship between the brain and the physical body interesting. It’s also interesting to see what new twists authors come up with on age old topics like weight loss and organization. I’ll trawl the library shelves and pick out several titles to take home at once and if there’s a Kindle freebie, I’m on it. I’ve found over the years that all this self-improvement reading has often benefited my finances, even if only indirectly. Here are some examples:

Weight Loss

It’s no secret that losing weight benefits your health which means less money spent at the doctor’s office. Your finances also benefit in other ways, including not eating out and limiting snack and expensive over processed food purchases.

Organization

When you’re more organized, not only do you have less clutter to wade through but your organization techniques tend to spill over to your finances. It’s much easier to deal with your bills, taxes, and accounts when everything is organized and easy to access.

Education

If you pursue your education, you’ll become more employable and possibly make more money. If you educate yourself about money, you’ll be more successful at managing your money.

Career Help

If you’re not in a satisfying job/career, you probably won’t make as much money as if you were working in a field you love. Passion counts for a lot when it comes to work.

Other self-improvement activities like quitting smoking (saves you money and medical expenses), stress reduction (another medical money-saver), creating better relationships (open communication about money is necessary to a financially healthy marriage), and dumping emotional baggage (everything becomes easier when you’re not constantly thinking about “issues”) can benefit your finances. And, of course, there’s a whole area of the self-improvement market dedicated to helping you sort out your issues with money and helping you to become debt free. Often even if you don’t set out to directly impact your finances, applying some self-improvement techniques to your life ends up saving or making you money.

The reverse is often true, as well. If you set out to fix your finances, you may find yourself improving other areas of your life. Let’s say you need to save money so you decide to quit smoking. Big money-saver. Or, you need to make some money so you start studying entrepreneurship so you can start a business. Not only might you open that successful business, but you might learn something about confidence, presentation skills, and improving your public appearance. Or maybe you decide to take an investing class at the local community college and suddenly you find yourself loving finance. It might lead to a career change which could make you a happier person.

Finances and self-help are intertwined. If you set out to study and act on one, you’ll likely find yourself getting better at the other one. So, whether your New Year’s resolution is to lose weight, deal with your relationships, or get a better job, don’t hesitate to trawl to self-help shelves at the library or bookstore and dive into your self-improvement project. Who knows? You might just find yourself on the way to a better financial life, too.

(Photo courtesy of Matt McGee)

10 Things That Don’t Seem To Be About Money, But Really Are

August 9, 2012 By Danielle Warchol 4 Comments

Many people fail to realize that almost all aspects of our lives are intricately weaved together with our finances, but it’s crucially important to understand that even things that don’t initially seem to have anything to do with finances or money management can have a great impact on these areas. By understanding that almost every decision that we make has financial consequences, you place yourself in a position to save money where you once wasted it without even realizing it. Here are a few of those areas that may not seem to have anything to do with money, but upon deeper reflection actually have a large impact in this area:

Stress

Almost everyone has been stressed out about something during their lives. Some of us deal with more stress on a daily basis than others. While stress can be caused by a variety of things, it’s often caused due to concerns about money. After all, which of us haven’t been stressed about our lack of savings, paying bills, or saving for retirement? Money is always a constant concern and it’s no wonder that stress is usually about money – even when it appears that the reason behind stress is something completely different.

Time

The saying “time is money” is definitely true. Time is a valuable thing and wasted time means wasted money. What this boils down to is people who squander opportunities to earn money – or spend less – in favor of being unproductive. How many of us could do an extra job for an extra paycheck but choose not to because we would rather hang out or sit in front of the TV? So, really, Benjamin Franklin was right when he said that “time is money”.

Relationship Breakups

More people than ever before state that the biggest reason their relationships fail is because of money. If one or both people in a relationship are barely breaking even, money is going to be an issue. It might not seem like it at first, but when you get down to the root of the problem or the arguments, you can bet that it’s going to be about money.

Health Problems

Just as money is often a factor behind stress, it’s also a factor behind poor health. Of course, money isn’t going to give you a disease, but constantly worrying about money will take its toll on your mental and physical wellbeing. If you’re worn down by your financial troubles, then you’re going to be more prone to getting sick.

Diet

Obviously, your diet is influenced by your financial status. Of course, on the surface level you’re going to worry about paying for groceries or your ability to go out to a restaurant is determined by how much money you have in the bank. But on a deeper level, your choice of food may be subconsciously influenced by money. For example, you might choose a generic brand over a well-known one because it’s cheaper. You might automatically skip organic produce because you don’t want to pay more money for it.

Education

Unfortunately, education has become about money. Sometimes it’s about sending a child to a public or private middle or high school. Sometimes it’s about whether or not someone can afford to go to a specific college. Additionally, instead of education being about obtaining knowledge and expanding one’s mind and skills, it’s become about obtaining a degree in order to obtain a job with a higher paycheck.

Habits

Most habits stem from someone’s financial status or awareness of money. This can range from having expensive clothing tastes to eating out every night to spending money twice a day for coffee. Or it could be obsessing about your budget and minimizing the amount of money you spend. It can even be something as simple as having the bad habit of leaving the light on after you leave a room, which makes your electric bill more expensive.

Emotions

Emotions are often tied to money. You’re happy when you’re not worrying about money and pleased when you can spend money without concern. But you’re angry when you don’t have any money and stressed when you’re in debt. Our emotions are tied to our financial stability. Even when money isn’t the first thing on our mind, it still affects our mood.

Entertainment

How you entertain yourself is definitely about money. Whether it’s going out to the movies, watching a sports game with friends, or staying home reading or watching TV, money is definitely involved. Your entertainment options are definitely affected by your budget and sometimes certain options aren’t feasible because you don’t have the money to spend. Even the decision to buy a DVD to watch repeatedly instead of paying for a movie channel on TV or Netflix is a decision that’s based on money and convenience.

Sleep

Naturally, sleep can be drastically tied to money. As with our emotions, health, and stress issues, the state of our finances can affect how we sleep at night. Are you worried about being able to pay your rent? You’re probably going to toss and turn all night. On the other hand, if you just got a promotion and a raise, you’re probably going to sleep wonderfully. Like most things, the more reassured you are, the better you feel. So, the next time you’re having a bad night’s sleep and are also having financial issues, you’ll know why you can’t get that rest you deserve!

(Photo courtesy of stevendepolo)

Learn Without Leaving Home

October 22, 2010 By Jennifer Derrick Leave a Comment

I’m a big believer in lifelong education. I don’t think you need to stop learning just because you got a diploma. I encourage people to learn about finance because it’s not something that many people learn in their first pass through school. You may take an economics course in college that focuses on theory, but practical financial information isn’t generally taught in school. The more you can learn about money, business, and investing, the better off you’ll be when it comes to managing your money and career.

Education helps your finances in three ways. First, you can choose to learn about personal finance specifically. You can take courses in investing, retirement planning, economics, and basic accounting. There are also courses in coupon use, estate planning, debt management, and saving for college. If you need to learn something about personal finance, there is usually a course that covers it. These types of courses will increase your financial literacy and enable you to manage your money better. When you know more about finance, you can make wiser decisions about your money.

Second, you can take courses that help you start your own business. Business accounting, tax planning, business law, and courses on how to open and operate a new business can get your dream venture off the ground. Many people dream of starting their own business, but falter when it comes time to actually run the business. Studies show that wealth is more easily generated when you own your own business, so if you have a great idea it’s best to figure out how to get that business going.

Third, you can learn new skills. When you learn new skills, you increase your earning potential. The more you know the more valuable you become to a potential (or current) employer. You can increase your computer skills, or learn something entirely new like graphic design. You can earn a certificate that is valued by your profession. More skills also translate into other sources of income. Maybe you’ve always wanted to be a photographer. Take some photography courses and before long you can supplement your income from your day job with a side job as a photographer.

The really good news is that, thanks to advances in online learning, you can learn all of this on your own time without leaving home. Many community colleges/extension programs now offer many of their courses online. Major universities even have programs where you can earn an entire degree while barely setting foot in a classroom. With courses starting all the time, there’s really no excuse anymore for not getting the education you need to improve your financial life.

Many community colleges offer their programs through ed2go.com. When you visit ed2go.com you can browse the course catalog and then either look for courses offered through your local institution or enroll directly through ed2go. Note that if your institution offers the course you want, it may be cheaper to enroll there. My local community college offers ed2go’s courses for an average of $87. If I enrolled through ed2go, the cost jumps to $139. However, if your local school doesn’t offer what you need, $139 is still a good deal. Also check your community college site to see if they offer courses not offered by ed2go. You might find something specific to your region taught by a local expert.

How useful is this, really, you ask? Just a quick perusal through ed2go.com and my local community school’s website yielded the following possibilities:

Business Law for the Small Business Owner
Debt Elimination Techniques That Work
Real Estate Investing
Stocks, Bonds, and Investing
Where Does All My Money Go (Budgeting)
Keys to Successful Money Management
Resume Writing
12 Steps to a Successful Job Search
Employment Law Fundamentals
Start Your Own Arts and Crafts Business
Marketing Your Business on the Internet
Start Your Own Small Business
Start and Operate Your Own Home Based Business
Income and Risk Management for Pre-retirees and Retirees
Introduction to Financial Survival in Today’s Economy

Plus many, many more. There are a ton of courses on various professional certifications, software applications, and career training. There are also courses on various skills including languages, photography, catering, cooking, health care and writing that can help you save or make additional money.

Aside from what you learn in a course, you also benefit because you meet new people. Even in online environments you interact with other students and teachers through message boards, IM, or live chat. These people may make good contacts for later opportunities or they may have contacts that you can use now. They may have ideas you hadn’t considered or special skills that you can use in your new business.

If you need to know something about finance or if you need to improve your skills, there really isn’t any excuse for not learning what you need to know. Online courses are reasonably priced, open to all, and the work can be done when you have some spare moments. You can learn what you need to know while you sit at home in your pajamas and eat dinner if you want. That beats schlepping to a class across town.

Your Education and Work History Only Gets You in the Door

June 10, 2010 By David G. Mitchell 6 Comments

I was scheduled to have coffee with someone tomorrow but he had to reschedule because he has a telephone interview. I am always happy to reschedule a meeting because another person has an interview or an opportunity to meet with a client. I really believe that every person who finds a new job or a better job or another client is helping to get us out of the recession just as much as the employers who are hiring and the clients who are looking for help.

Just as I am encouraging to job seekers, I also feel sorry for a lot of them. During the heady full steam ahead days before the recession, ability and reputation alone were often enough to advance a career. Now employers have the time and the inclination to pay more attention to recruiting. After all, from a hiring perspective, it is a buyer’s market.
Looking back on most of all of the jobs that I have gotten since I entered the work force, it has rarely been the case that I was hired because of my skills or achievements. Those things can get me in the door for an interview but, in reality, there are a lot of similarly qualified people in the USA. Although I like to think that I am a bit better than anyone with whom I may be competing, my abilities really shine only after I have started working. On paper, they probably sound like all of the other guys who are pursuing clients or seeking jobs.

At a very fundamental level, each time I have been hired for a new job, it has been because of some intangible connection that I made with the person doing the hiring. For example, the first job that I got after I graduated from college I got because I was carrying a copy of Foreign Affairs Magazine when I went for the interview. At the time, I was not sophisticated enough to realize that it might not look all that professional to carry reading material to an interview, but thank goodness for that! After I had gotten the job (which paid me about $30,000 in 1989 — not bad for a job that required no nights or weekends). Had I not been carrying Foreign Affairs, I might very well have found myself in a much less lucrative position in the year before I went to graduate school.

After I got out of graduate school, I got a very good job. When I received the offer and had been on the job for a few weeks, I asked the person who interviewed me why I had been given the job. She told me that she had such a good time talking to me that she thought I would add a lot to the team spirit at our office. The fact that I had excelled academically was not a factor. It was all personality.

A few years later, I moved on to another job that would give me a better quality of life. A similar interview process echoed my earlier experience. When I received my job offer, my new boss told the headhunter that I was using that she found me very amusing because I could relate all sorts of unusual job experiences to my new position. She loved my creativity. Again, my academic and professional history got me an interview, but my personality got me the job.

Today I met with another professional. We enjoyed a 90 minute conversation that had almost nothing to do with either of our respective businesses. By the end of the conversation, he was eager to refer business to me and I was eager to refer business to him. We built a quick rapport and a fundamental trust of each other. As a result, we walked into the coffee shop as acquaintances who had spoken for five minutes while walking our respective dogs. We left the coffee shop as friends with plans to get together with our wives for a night of music and conversation.

Whatever your life’s achievements may be, they can only advance you so far. Who you are is ultimately far more important that what you can do. After all, there are probably a lot of people who can do what you do, but there is only one you. Always put your best foot forward and you can’t go wrong.

What do you emphasize when you are networking or interviewing? Do you make the conversation about you or do you let the real “you” come through and try to make a connection with the people you meet? Do you feel that you need to sell yourself to other people or are you a “product” that sells itself?

A Perfect Game: It’s Time To Break Down Barriers

May 1, 2009 By David G. Mitchell 9 Comments

Recently, a twelve year old New Jersey Little League pitcher pitched a perfect game. For those of you who are not baseball fans, a perfect game occurs when a pitcher retires every batter in a game, without any of them reaching base. It is one of the rarest feats in baseball and it is a game that the pitcher will never forget.

The Little League pitcher threw out the ceremonial first pitch in a professional game featuring the New York Mets and the Washington Nationals. Moreover, the pitcher has appeared on weekday morning television shows and even been the subject of conversation on ESPN.

Yes, even for kids, a perfect game is a big deal. That said, several perfect games are thrown every year in Little League baseball games. Why, you might ask, is this particular perfect game getting so much attention? In this case, the pitcher was twelve year old Mackenzie Brown – a girl playing a game that is usually reserved for boys. More importantly, she is a girl who – for at least that one game – “put a real hurting on the boys” (as one of my old coaches would have said).

Young Mackenzie Brown is not the first female to challenge males in sports that are usually dominated by men. Manon Rh

Why Does College Cost So Much?

October 31, 2008 By Joe Morgan 6 Comments

Consider that, according to the Bureau of Labor Statistics, in the 20 years from 1985 to 2005 energy costs have risen 108%, Medical costs 251%, and college costs increased 439% — but a college degree is worth it, right?

Not necessarily. While having a college degree does open doors, and increase the odds of earning a top salary in a given field, there is no direct correlation to tuition costs and benefit.

It’s one thing to hike tuition to open up a new career offering or bring more (or better) faculty on board. Sadly, that’s not where the bulk of the tuition hikes are going. Where does the money go? In a word, perks.

Princeton recently built a $136 million student residency, and apparently spared little or no expense. Do college students really need triple-glazed mahogany casement windows of leaded glass in each dorm room? Or hot tubs large enough for 15 students, as Boston University has recently added?

It’s one thing for Ivy league universities to get billionaire donors to fund such decadence, but it’s even creeping down to State Universities. It may not be so in your face decadent, but it’s there. Many schools now feature multiple eateries with a choice of ethnic and organic foods, and massive fitness and recreation centers. And wouldn’t those donations from billionaire benefactors be better spent on the quality of the student’s education?

No free market at work

In free markets, frugal consumers eventually hit a point of pain after which they will spend no more money for the given product or service, and change their consumption habits. We see this now with the price of oil and gasoline. But in the realm of higher education, free market logic does not apply. Instead, universities are free to raise their tuition with impunity – in fact they are rewarded for doing so.

Rewards for tuition hikes

There are two basic reasons colleges raise the tuition costs: perception and ranking.

The perception is that higher cost equals higher quality. We’ve all heard that “you get what you pay for.” I happen to believe that this is only true up to a point, and we have past that point long ago with college education. But my belief doesn’t change the reality of perception. Studies confirm that after colleges raise the tuition, the number of applicants also rises.

The second reason, ranking, comes from the all important U. S. News & World Report College Rankings and Reviews. This has long been the yardstick by which higher education is measured. The problem is that much of the measurement is based upon the number of applicants that get rejected by the college. As stated above, as schools raise their tuition costs, the number of applicants also rises. Since the school has done nothing to accommodate this new influx of applicants, they will end up turning a higher percentage away, and thus appear more elite in their acceptance.

What you can do about it

Scholarships. Scholarships are great, if you qualify. Just don’t get scammed by anyone selling scholarship lists. The information is free, and you may have to do some digging, but it is unnecessary to pay to find a scholarship.
Federal and state grants. Free money is always welcome, right? Most high school grads never even bother to fill out the paperwork to apply for a grant. That’s good news for those that do, since there’s more money available for those that apply.
Start closer to home. 2 year, community college is an excellent cost saving option for many degrees. Every student has to fulfill basic levels of English, Math, Science and History. Why pay full price for the basics?
Use a 529 or a coverdell education savings account. Both of these accounts are tax deferred on withdrawals, but differ slightly in contribution rules.
Write your representative. Grants and scholarships are nice, but don’t do anything to fix runaway tuition costs. This is due to the fact that universities charge exorbitant amounts of money because they can. Scholarships, grants and tax credits may lower an individual’s cost in the short term, but those offsets become factored into the tuition costs and end up driving prices up in the long run.

Perhaps it’s time to reconsider the non-profit tax status of many Universities.